GSGM 7324: UIU Assignment: Organizational Development and Change Management

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Fujifilm’s Transformation

Fuji Photo Film Co., LTD. was established in 1934 as a subsidiary of Daicel with the aim of producing photographic films. After the Second World War, they diversified, penetrating the medical (x-ray diagnosis), printing, electronic imaging, and magnetic materials fields. In the 1980s, Fuji Photo expanded its production and other bases overseas, stepping up the pace of its business globalization and developing digital technologies for its photo-related, medical, and printing businesses. The new millennium witnessed the rapid spread of digital technology, and demand for photographic films plunged in line with the growing popularity of digital cameras. In response, Fuji Photo implemented management reforms aimed at a drastic transformation of its business structures. Even as early as the 1980s, the company had foreseen the switch from film to digital, so “it developed a three-pronged strategy: to squeeze as much money out of the film business as possible, to prepare for the switch to digital, and to develop new business lines.” Thus, Fujifilm transformed from a photography-centric firm to a healthcare products and medical imaging company and redefined its corporate mission, vision, and values, with a core commitment to creating superior healthcare experiences for their customers and patients.

Positioning Healthcare business as one of its important pillars of growth, Fujifilm has been actively investing its management resources in the business to become a comprehensive healthcare company, encompassing “Prevention” including cosmetics and supplements, “Diagnosis” including diagnostic imaging systems and medical IT, and “Treatment” including regenerative medicine and biopharmaceuticals. The Medical Systems business, covering the “Diagnosis” field, is leading the overall Healthcare business, offering a wide variety of medical diagnostic products and services with medical IT at its core, ranging from X-ray, endoscopy, and ultrasound to in-vitro diagnostics systems. In the medical IT field, Fujifilm is leveraging its distinctive image processing heritage and also working to develop AI technologies that have the potential to support diagnostic imaging workflows under the “REiLI” brand.

In December 2019, Fujifilm acquired Hitachi’s diagnostic imaging business. Through this acquisition, Fujifilm will establish a solid business foundation to become a world-leading healthcare company and play a leading role in improving the quality of medical care. According to them, this move is intended to have three outcomes:

1. Providing one-stop total solutions through a comprehensive product line-up: By acquiring Hitachi’s Diagnostic Imaging Systems business, Fujifilm will be able to provide a one-stop total solution that includes CT, MRI diagnostics imaging, medical IT, in-vitro diagnostics, and endoscopy. This will dramatically enhance its capability to offer a comprehensive solution to medical institutions. In addition, Fujifilm, a comprehensive healthcare company covering “Diagnosis” and “Treatment,” will be able to create new business that can generate synergies between its Medical Systems business and other businesses in the healthcare segment such as pharmaceuticals and regenerative medicine.
2. Providing innovative solutions by leveraging Fujifilm’s proprietary image processing and AI technologies: By leveraging Fujifilm’s unique image processing technologies utilized in picture archiving communication systems (PACS) and AI technologies, Fujifilm will be able to provide new value-added solutions. For example, the use of AI technology on CT images can reduce noise and offer better image quality in low-dose examinations. In addition, through its extensive portfolio, Fujifilm will be able to enhance its relationships with medical institutions and medical specialists and access high-quality diagnostic images and operation data. By leveraging such data, Fujifilm will be able to expand into new areas, including “AI-supported Diagnosis” and “AI-supported Maintenance.”
3. Expanding sales capability through cross-selling: Fujifilm will further expand the business in the global market through cross-selling, utilizing the extensive sales channels of both companies.

Fujifilm is active in pharmaceutical products and contract manufacturing through its subsidiaries including Fujifilm Toyama Chemical, Fujifilm Diosynth Biotechnologies, etc. In which amid the 2020 COVID-19 pandemic, one of Fujifilm Toyama Chemical drugs, i.e. favipiravir, an antiviral commercially named Avigan, is being considered as a possible cure to the virus, after having been approved by China, Russia, and Indonesia authorities by June 2020.

REFERENCE: https://healthcare-in-europe.com/en/news/fujifilm-acquires-hitachi-s-diagnostic-imaging-business.html

Question 1 

a. Discuss the importance of the “Entering and Contracting” phase in the OD process. How would an OD consultant approach this phase in the scenario of Fujifilm transitioning from a photography-centric firm to a healthcare company?

b. Analyze the role of the “Diagnostics” phase in identifying the challenges Fujifilm might face during its transition to a healthcare-focused company. What specific diagnostic tools or methods would be most effective in this context?

Question 2

1. Explain how Fujifilm could have used Lewin’s Three-Step Model to manage its transition from a photography-focused company to a healthcare enterprise. Discuss each stage (unfreezing, movement, and refreezing) in the context of Fujifilm’s organizational change.
2. Analyze how Kotter’s Eight-Step Plan for Implementing Change could have been applied by Fujifilm during its transformation. Highlight the steps that would be most crucial in ensuring the success of the transition.

Question 3 

1. Discuss how Fujifilm could have utilized human process interventions during its transition from a photography-focused company to a healthcare enterprise. Consider aspects such as leadership development, team building, and conflict management in your response. (20 marks)

b. Analyze the role of technostructural interventions in Fujifilm’s transformation. Focus on how changes in organizational structure, work design, or technological advancements could support the shift to the healthcare industry.

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